Thread: New car dealers must be in trouble

Today I was looking on the Hobart paper the specials from the local dealers.
New cars that cost $30000 are reduced up to $8000
Something have to be very wrong to reduce new car price up to near 25%.

It is the amount of fat built into the RRP to handle trade-ins. Customer thinks trade is worth $15,000 but wholesale value is $8000. No worries, mate, we will give you $15000 off the full (or inflated) price of the new car. So new car is $40000 minus $15000 trade-in= $25,000 cash plus an $8000 used car. Dealer has received $33,000.

I am currently in the USA and was talking to a couple who have a GM dealership in a small town in Iowa. Their sales are up 11.5% in the last two years and everyting is rosy. They say mid-westerners are slowly coming to their senses and to realise that buying American is good overall. They say in their area very few imports are now being sold and the MB/BMW dealer in their town is moaning and groaning and crying poor.

You should see what they were driving. I have photos and will post them when I return. Camaro with a ZL454 and six speed double overdrive trans. I spotted the ZL454 badge on the rear corner and asked about it. This is her personal car and was done by a professional conversion shop. Yes, it is VERY fast but cruises at interstate speeds at 1600 rpm and 26 mpg (Us gallon)